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A Rambus conference began in Japan today and coincided with an announcement which suggests the firm is edging towards cutting costs on packaging. The packaging in Rambus RIMM modules, which includes an expensive spreader, is one reason why the memory has been so expensive in the past, as Peter McWilliams, an Intel Fellow, explained to us at the Intel Developer Forum last month. Now Tessera, a supplier of packaging technology, has come to Rambus' rescue, by introducing a technology which will sharply cut the costs of packaging for the very pricey RIMMs. The process, known as Zinger 4, cuts the packaging costs of RIMMs by over 50 per cent, Tessera claims. That, in combination with other cost cutting methods Rambus is adopting, will further reduce the cost of the still very pricey modules. If Rambus drops its royalties, as it broadly hinted it might do, that will further help to reduce costs. Moreover, yesterday, Rambus issued a press release stating that Hyundai and Infineon, had passed their component and system level examinations and would join Samsung, NEC and Toshiba in "volume production" of RIMMs. Intel will be a quarter of a billion dollar investor in Infineon when it floats in mid-March. One positive move for Rambus, putting aside the usual motions the Dramurai are making, is that our understanding is that HP's print server division is, as we speak, designing in RIMMs for its rather successful range of printers. So, all in all, buy Rambus shares now before its stock price hits the $500 mark. You know it makes sense. RMBS shares closed on Wall Street last night at $301. The stock is obviously undervalued... ® See Also Six Dramurai forgive Rambus: Seven Dramurai on cards Intel memory strategy unchanged. Cough

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